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Thursday, 18 Oct 2018

Written Answers Nos. 179-202

Job Creation

Questions (179)

Brendan Smith

Question:

179. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation her plans and those of the industrial promotion agencies to assist in the maintenance of existing employment and for job creation in 2019 throughout County Cavan; and if she will make a statement on the matter. [42983/18]

View answer

Written answers

Since becoming Minister for Business, Enterprise and Innovation, I have made jobs and enterprise in the regions my top priority.

The Regional Action Plan for Jobs initiative is a central pillar of the Government’s ambition to create 200,000 new jobs by 2020, 135,000 of which are outside of Dublin. A key objective of each of the 8 regional plans, including the Border region, is to have a further 10 to 15 per cent at work in each region by 2020, with the unemployment rate of each region not more than one percentage point greater than the national average.

We are well on the way to meeting this target. Progress across the eight regions has been very positive since the launch of the initiative, with an increase in employment of 146,400 people in employment Q1 2015 to Q2 2018 in the regions outside of Dublin and 240,600 additional jobs nationwide.

4,400 more people are in employment in the Border region from Q1 2015 (baseline year) to Q2 2018 (please note that in the CSO’s revised regional groupings, Louth is no longer included in data for the Border region. Please see end of note for more details)*.

The Border has a Q2 2018 unemployment rate of 6.5% which currently meets the target of being within one percentage point of the national average (Q2 2018).

There is always room for improvement and I am working hard, across Government, to further unlock the economic potential of the North-East, including in Cavan. The Enterprise Agencies under my remit will continue to engage with their clients, and with one another, to create jobs and source new investment for this region.

The North-East/North-West Action Plan for Jobs has been a key policy response for supporting employment growth in the Border region, working with public and private stakeholders. In April of this year, I met with the Chairs of all the Regional Action Plan for Jobs committees and other regional stakeholders, to start a process to Refresh and Refocus all Regional Plans, to ensure their effectiveness, relevance and impact out to 2020, particularly in light of Brexit.

The North-East will have a stand-alone plan for this iteration, in which Cavan will form part of alongside Monaghan and Louth. This work is ongoing at present.

In December last year I announced an allocation of €30.5 million in funding to support enterprise capability in the regions, with 21 projects from all over the country receiving funding. This Regional Enterprise Development Fund (REDF) totalling €60 million is being rolled out by Enterprise Ireland over the next 4 years to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level. The Fund supports the ambition, goals and implementation of the Regional Action Plans for Jobs.

Three projects from the Border region were successful under Call 1 of the Regional Enterprise Development Fund including a network of three Digital and Innovation Hubs with one hub each in Cavan, Leitrim and Longford.

In April of this year I launched a second competitive call under the REDF, which will make available the remainder of the €60 million. The results of this competitive process will be announced by the end of the year.

IDA Ireland continues to highlight the benefits of expanding or locating in all regions, including in Cavan. There are over 122,000 people employed across 649 firms in IDA client companies located outside of Dublin, with 45% of all new foreign direct investment (FDI) jobs created last year based in regional locations.

Last year, IDA client companies conducted two site visits to County Cavan and one site visit as of the second quarter of 2018. Site visit activity, however, does not necessarily reflect investment potential, as at least 70% of all new FDI comes from existing IDA client companies.

IDA Ireland is working hard to promote County Cavan to potential investors. The Agency has a dedicated regional manager for the North East/North West Region and has an office in the Cavan Innovation and Technology Centre. As part of its strategy to encourage investment to the area, it is focusing on sectors including agri-food, manufacturing, tourism and internationally traded services.

The IDA also regularly engages with key stakeholders on the ground in Cavan, including with local authorities, public bodies, the education sector and companies from both its own client base but also from the indigenous sector. IDA Ireland also owns sites in Cavan that are being actively marketed to its clients.

It is important to emphasise that FDI only forms one part of investment in regional locations. Indigenous enterprise is responsible for a significant portion of employment growth, especially outside Dublin. My Department and all its agencies, including Enterprise Ireland and the LEOs, work together constantly and collaboratively to ensure that jobs and investment are spread as fairly as possible across this country.

I am pleased to report that Enterprise Ireland (EI) supported companies employed 5,451 people in Cavan in 2017. This is an increase of 5% compared to 2016. Overall in the North-East, in 2017, 16,938 were employed in EI client companies.

The LEO in Cavan is the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports for anyone intending to start or grow their own business in the area.

In 2017 there were 1,252 people employed in LEO client companies in Cavan. LEO client companies in the county created 207 new jobs with a net increase of 100 jobs. The LEO will continue to support and promote micro-enterprises throughout the county.

The LEOs can offer direct grant aid to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sectors which, over time, have the potential to develop into strong export entities. Subject to certain eligibility criteria, the LEOs can provide financial assistance within three main categories: Feasibility Grants; Priming Grants and Business Development Grants for existing businesses that want to expand. In addition, there is a Technical Assistance Grant available for eligible micro-exporter applicants who are seeking to explore alternative markets for their product or service.

For anyone interested in starting or growing a business, LEO Cavan may be able to offer ‘soft’ support in the form of training (e.g. a Start Your Own Business course); a mentor to work with the business proposer; or targeted programmes such as Lean for Micro (to help boost business productivity and competitiveness).

In addition to direct financial and soft supports, the LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, the Credit Review Office and Microfinance Ireland. The LEOs can also offer advice and guidance in areas such as Local Authority rates, Public Procurement and other regulations affecting business.

*Due to regulation changes, the ‘NUTS3’ regional groupings (used by the CSO to compose regional employment data) have recently been updated. Under the new groupings, County Louth has moved from the Border to the Mid-East region. From Q1 2018, CSO Labour Force Survey data has been updated to take account of these changes.

Brexit Supports

Questions (180)

Brendan Smith

Question:

180. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation the specific supports available to support small and medium enterprises that face particular difficulties due to Brexit; and if she will make a statement on the matter. [42984/18]

View answer

Written answers

My Department and its agencies are central to the Government effort to prepare Irish SMEs and our wider business ecosystem for Brexit. The agencies under my remit have an extensive range of supports available to enable companies to both consolidate market share and continue to pursue new opportunities and to grow their market presence. In Budget 2019 an extra €8 million has been allocated to the enterprise agencies and regulatory bodies under my Department who work with SMEs at the coalface to develop their supports and plans for business.

For instance, the ‘Brexit SME Scorecard’ is a new interactive online platform launched by Enterprise Ireland (EI) which can be used by all Irish companies to self-assess their exposure to Brexit. To date, 2,962 Brexit Scorecards have been completed. The Be Prepared grant, also available through EI, offers SME clients a grant of up to €5,000 to assist them in preparing an action plan for economic shocks such as Brexit. The grant can be used to help cover consultancy, travel and travel expenses associated with researching the direction of their action plan. 137 Be Prepared Grants have so far been approved.

Enterprise Ireland has run eight Brexit advisory clinics throughout the country to date. Approximately 590 people have attended these events and three more clinics are due to take place before the end of the year in Dundalk, Waterford and Limerick.

The Local Enterprise Offices (LEOs) have organised various events to enable companies to learn about the potential impacts, opportunities of Brexit. 3,925 participants have taken part in these events. In addition, 263 LEO clients have received one-to-one mentoring solely focused on Brexit. The LEOs also engage in a number of other schemes to help companies prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 293 clients have been approved so far for this scheme.

The Brexit Loan Scheme, launched in March this year, makes a fund of up to €300 million available to eligible businesses to help them innovate, change or adapt to mitigate their Brexit challenge. So far, there have been 262 applications to the Scheme, with 224 approved by the Strategic Banking Corporation of Ireland.

InterTradeIreland’s Brexit Advisory Service was established in May 2017 to provide a focal point for SMEs, working to navigate the changes in cross-border trading relationships brought about by Brexit negotiations. To date the Brexit Advisory Service has engaged directly with over 2,350 SMEs in Ireland through the various elements of its Brexit Advisory Service.

I am encouraged by the fact that businesses are engaging in high numbers with these supports. It shows that many businesses are taking the first important steps of gathering information and preparing Brexit contingency plans.

Industrial Development

Questions (181)

Brendan Smith

Question:

181. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation when sites will be identified as suitable for the location of large-scale data centres; and if she will make a statement on the matter. [42985/18]

View answer

Written answers

In 2017 IDA Ireland appointed Jacobs Engineering, supported by AOS Planning, to identify potential strategic land banks in Ireland that would be particularly suitable for the sustainable development of data centre projects. The study was commissioned to understand what locations in Ireland are best placed to win and sustain this type of investment. The evaluation process, which has since been completed by Jacobs, focused on evaluating all potentially viable land options that would be compatible with the complex and evolving needs of data centre investments.

It is worth reiterating that, over recent years, leading international technology and computing companies have announced several significant data centre investments for Ireland and the goal is to ensure that this trend continues. In that context, IDA Ireland, supported by the relevant key stakeholders, will continue to highlight credible and flexible property solutions that form part of the competitive value proposition for this sector.

Foreign Direct Investment

Questions (182)

Brendan Smith

Question:

182. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation further to Parliamentary Question No. 140 of 21 June 2018, if there have been developments in the possible location of an inward investment project at this location; and if she will make a statement on the matter. [42986/18]

View answer

Written answers

The IDA Ireland business and technology park in Killygarry, Co. Cavan covers approximately 17 hectares. I understand that approximately 2 hectares of the business park have been allocated for potential indigenous enterprise. The remaining 9 hectares continue to be actively marketed to prospective investors by the IDA.

With respect to Cavan more generally, IDA Ireland markets the County as part of its North-East region, together with Louth and Monaghan. There are currently seven multinational companies in Cavan employing a total of 1,155 people. The Agency has a dedicated regional manager for the North East/North West Region and has an office in the Cavan Innovation and Technology Centre. As part of its strategy to encourage investment to the area the Agency is focusing on sectors including agri-food, manufacturing, tourism, internationally traded services. The IDA also regularly engages with key stakeholders on the ground in Cavan including local authorities, public bodies, the education sector and companies from both its own client base but also from the indigenous sector.

Work Permits Applications

Questions (183)

Bernard Durkan

Question:

183. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation if a person (details supplied) may qualify for a work permit in view of the fact that they have worked here in the home care industry for more than ten years; and if she will make a statement on the matter. [43018/18]

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Written answers

The Employment Permits Section of my Department inform me that it has no record of any application for an employment permit for the above named person (details supplied).

In order to work in Ireland a non-EEA National, unless they are exempted, must hold a valid Employment Permit. The Employment Permits Section of my Department administers the Employment Permits system. All applications for employment permits are processed in line with the Employment Permits Acts and associated Regulations which lay down in legislation the criteria in relation to the application, grant and refusal of an employment permit.

In order to apply for an employment permit a non-EEA national must have a secured a job offer for an eligible occupation from an Irish registered employer.

Details on how to apply for an employment permit are available on our website at the following link - https://dbei.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/.

My officials have produced a comprehensive Frequently Asked Question document covering all aspects of the Employment Permits regime which is available here - https://dbei.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/FAQs/Employment-Permits-FAQs-2018.pdf

Finally, it should be noted that my colleague, the Minister for Justice and Equality, has responsibility for issuing immigration permissions and visas.

Brexit Issues

Questions (184)

Bernard Durkan

Question:

184. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which she continues to make provision for the negative impact of Brexit with particular reference to the industries here most likely to be affected negatively; and if she will make a statement on the matter. [43038/18]

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Written answers

The Department of Business, Enterprise and Innovation and its agencies is central to the Government effort to prepare Irish businesses for Brexit and mitigate against potential negative impacts. In Budget 2019 an extra €8 million has been allocated to the enterprise agencies and regulatory bodies under my Department who work with Irish businesses at the coalface to develop their supports for business. In particular, businesses and industries involved in export and trade could be negatively impacted by Brexit. The agencies under my remit have an extensive range of supports available to enable companies to both consolidate their current market share and continue to pursue new opportunities and to grow their market presence.

For instance, the ‘Brexit SME Scorecard’ is a new interactive online platform launched by Enterprise Ireland (EI) which can be used by all Irish companies to self-assess their exposure to Brexit. To date, 2,962 Brexit Scorecards have been completed. The Be Prepared grant, also available through EI, offers SME clients a grant of up to €5,000 to assist them in preparing an action plan for economic shocks such as Brexit. The grant can be used to help cover consultancy, travel and travel expenses associated with researching the direction of their action plan. 137 Be Prepared Grants have so far been approved.

Enterprise Ireland has run eight Brexit advisory clinics throughout the country to date. Approximately 590 people have attended these events and three more clinics are due to take place before the end of the year in Dundalk, Waterford and Limerick.

The Local Enterprise Offices (LEOs) have organised various events to enable companies to learn about the potential impacts, opportunities of Brexit. 3,925 participants have taken part in these events. In addition, 263 LEO clients have received one-to-one mentoring solely focussed on Brexit. The LEOs also engage in a number of other schemes to help companies prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 293 clients have been approved so far for this scheme.

The Brexit Loan Scheme, launched in March this year, makes a fund of up to €300 million available to eligible businesses to help them innovate, change or adapt to mitigate their Brexit challenge. So far, there have been 262 applications to the Scheme, with 224 approved by the Strategic Banking Corporation of Ireland.

InterTradeIreland’s Brexit Advisory Service was established in May 2017 to provide a focal point for SMEs, working to navigate the changes in cross-border trading relationships brought about by Brexit negotiations. To date the Brexit Advisory Service has engaged directly with over 2,350 SMEs in Ireland through the various elements of its Brexit Advisory Service.

I am encouraged by the fact that businesses are engaging in high numbers with these supports. It shows that many businesses are taking the first important steps of gathering information and preparing Brexit contingency plans.

Skills Development

Questions (185)

Bernard Durkan

Question:

185. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she continues to monitor the availability of the requisite skills in the workplace having particular regard to the skills requirements of high technology industry; and if she will make a statement on the matter. [43039/18]

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Written answers

My Department is aware that it is essential that Irish enterprise has access to high-quality, adaptable and flexible talent. In order to meet this demand, the Government is committed to building and retaining a highly skilled indigenous workforce to serve the needs of the economy.

This goal is set out under the framework of two overarching skills development strategies:

- Ireland’s National Skills Strategy 2025, which sets out a vision of how Ireland can continue to develop relevant skills and ensure that the supply of skills is activated and effectively used; and

- Action Plan for Education, 2016-2019, which aims to make the Irish education and training system the best in Europe over the coming decade

The sophisticated skills architecture established in Ireland is key in identifying and responding to skills gaps as identified by enterprise and education and training providers. It constitutes the following elements:

National Skills Council (NSC): The NSC was established in 2017. It provides a mechanism for mediating demands on resources in a manner that facilitates prioritization of identified skills needs, while at the same time enhancing education and training provider responses to and delivery of these identified needs. The Council draws on the work of the Expert Group on Future Skills Needs (EGFSN), the Skills and Labour Market Research Unit in SOLAS, and the Regional Skills Fora.

Regional Skills Fora: A network of 9 Regional Skills Fora fosters close co-operation at regional level between education and training providers and regional enterprise. The Fora provide a cohesive education-led structure for employers and the further education and higher education system to work together in building the skills needs of their regions.

Expert Group on Future Skills Needs (EGFSN): The EGFSN is an independent, non-statutory body, which includes representatives from the business community, education and training providers, learner-support groups, trade unions, and a smaller number of Government Departments and agencies. It identifies the skills required by enterprise across occupations and sectors, as well as providing information to education and training providers to allow them to support the alignment of programmes with employers’ needs. My Department provides the EGFSN with research and secretariat support.

High level ICT skills have been a key concern of the EGFSN since 2013, when it undertook the study Addressing Future Demand for High-Level ICT Skills. This study included a demand forecast for such skills, both in the ICT sector and across other sectors of the economy, over the period 2013-2018. A related objective was how Ireland could retain and attract high-level ICT Skills to address immediate high level ICT skills recruitment needs. The findings and recommendations of this report were essential inputs into the development of the ICT Skills Action Plan 2014-2018.

At official level, my Department has also been involved in the High Level Steering Group responsible for monitoring the implementation of the ICT Skills Action Plan. As my Department and the Department of Education and Skills look to develop a new ICT Skills Action Plan for the coming years, the EGFSN has engaged in a refresh of the demand forecast exercise undertaken in 2013, for the period 2017-2022.

Through the agencies and initiatives mentioned above my Department and the Department of Education and Skills will continue to ensure that an adequate and appropriately skilled workforce remains readily available to meet the requirements of the high tech industry.

Economic Competitiveness

Questions (186)

Bernard Durkan

Question:

186. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she continues to monitor impediments likely to impact on business throughout the country with particular reference to the need to ensure the availability of indigenous and foreign investment in a business friendly environment with consequent employment opportunities; and if she will make a statement on the matter. [43040/18]

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Written answers

Competitiveness is integral to exports, jobs growth and as a means of achieving sustainable improvements in living standards. Improving competitiveness performance is a core focus of the work of my Department and wider Government policy and is particularly vital in light of the challenges posed by Brexit.

Ireland’s overall competitiveness performance remains positive. The Institute for Management Development shows that Ireland is the 12th most competitive economy in the world and the 3rd most competitive economy in the euro area. The 2018 Global Competitiveness Report published by the World Economic Forum on 17 October shows Ireland is holding its 23rd position in the Global Competitiveness Index and continues to be the 8th most competitive economy in the euro area and the 11th most competitive economy in the EU28. The Report shows a range of strengths –Ireland is ranked in the top 15 in relation to Cost of Starting a Business (4), Attitudes toward entrepreneurial risk (11) and Growth of innovative companies (14). Furthermore, Ireland scores 99.4 out of 100 in terms of macroeconomic stability. It is an important signal to international investors.

Most importantly, our improved competitiveness is reflected in strong employment growth across sectors and regions. The strong performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended and reflects the competitiveness of the environment in which to do business in Ireland.

Recent reports by the National Competitiveness Council have highlighted the need to continually enhance competitiveness performance. I share the Council’s view that to further improve competitiveness we must preserve fiscal sustainability, maximise investment in infrastructure and talent, maintain cost competitiveness, and drive innovation and productivity across all economic sectors. Global uncertainty, and Brexit in particular, has underlined the importance of building competitive advantage, generating an uplift in enterprise export competitiveness and continuing to harness the benefits from trade and the Single Market to secure sustainable jobs and growth. My objective is to ensure the economy is resilient at sectoral and enterprise level to deal with imminent competitiveness challenges and to build further on the progress we have made.

Competitiveness is key to success in international markets and helping businesses to improve their competitiveness will remain a key focus for my Department. We are driving the implementation of our research strategy, Innovation 2020. We are putting more people on the ground in foreign markets to attract investment and helping Irish businesses which export to the UK and helping others diversify into new products and markets. I launched the €300 million Brexit Loan Scheme in March 2018 this year. This scheme supports the working capital needs of companies impacted by Brexit and will be available for two years to eligible businesses with up to 499 employees. In addition, my Department and the Department of Agriculture, Food and the Marine in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund (EIF) are developing the Future Growth Loan Scheme as announced in Budget 2019. The €300m long-term Loan Scheme will provide businesses the opportunity to borrow for up to ten years to support capital investment.

Enterprise Support Services Provision

Questions (187)

Bernard Durkan

Question:

187. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which she continues to encourage start-up enterprises in all regions throughout the country; the issues identified to date as being likely to impede progress; and if she will make a statement on the matter. [43041/18]

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Written answers

I am committed to the development of a business environment that is encouraging of entrepreneurs in every region of the country. My Department launched the National Policy Statement on Entrepreneurship (NPSE) in 2014. It set out the Government’s strategic objectives as a facilitator within the Irish entrepreneurship ecosystem. Its ambition is to double the jobs impact of start-ups on the Irish economy over the 5 years by:

- Increasing the number of start-ups by 25% (3,000 more start-ups per annum)

- Increasing the survival rate in the first five years by 25% (1,800 more survivors per annum), and

- Improving the capacity of start-ups to grow to scale by 25%.

The NPSE is a means for facilitating the entrepreneurs of Ireland in creating, surviving and growing their businesses after a period of huge upheaval in terms of the economy and in new technologies and disruptive business models. Irish entrepreneurs, as ever, have shown resilience, innovation and the willingness to take risks which has seen the rapid increase in the number of business births but also a reduction in the rates of business deaths. For example the latest figures from the Central Statistics Office Business Demography report 2016 indicates there were 19,249 new enterprise births in 2016, up from 16,256 in 2015.

Marking the half way point of the Statement, 2017 saw the development and organisation of the Mid-term Review. My Department held a number of stakeholder meetings grouped by those involved in education; state bodies and entrepreneurs themselves. Areas identified for improvement included access to finance, availability of skilled workers and the need to increase the number of female business owners.

In response to the findings of the Mid-term Review and ongoing policy development within my Department, I decided to develop an SME and entrepreneurship strategy for Ireland. It was decided that a review of SME and Entrepreneurship Issues and Policies in Ireland would be undertaken in conjunction with the OECD to support the development of a strategy for SMEs. We have ensured that the review will have a strong regional focus. The review commenced in 2018 and the process will take 18 months to complete.

The key review objectives are to provide an assessment of current SME and entrepreneurship policies and programmes, strengthen policy design and implementation through recommendations and dialogue stimulation, including through a policy roadmap, and provide international comparison of successful SME and entrepreneurship policies. With this roadmap, I will develop an SME and entrepreneurship strategy to ensure Ireland remains a good place to start a business and strengthens the business environment to ensure more indigenous business throughout the regions can start, grow and internationalise.

Notwithstanding these policy initiatives, there are currently many supports available to encourage startups throughout every region in the country. The 31 Local Enterprises Offices (LEOs) are the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports for anyone intending to start or grow their own business.

Elsewhere, last year I announced an allocation of €30.5 million in funding to support enterprise capability in the regions, with 21 projects from all over the country receiving funding. This Regional Enterprise Development Fund (REDF) totaling €60 million is being rolled out by Enterprise Ireland over the next 4 years to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level. The Fund supports the ambition, goals and implementation of the Regional Action Plans for Jobs (RAPJ). I have asked the RAPJ Implementation Committees in each region to lead a process to Refresh and Refocus their Plans to 2020. They will define between five and ten clearly defined regional enterprise development objectives with job creation potential, together with measurable time-bound actions to deliver over the next two years.

In summary, I and my Department continue to develop and deliver supports which encourage startups in every region and county of Ireland. We are in frequent consultation with entrepreneurs and are listening to their concerns and making every effort to address these concerns. Ireland is a good country in which to start a business. I have every intention of making it even better.

Research and Development Supports

Questions (188, 191, 192)

Bernard Durkan

Question:

188. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which innovation continues to be a feature of enterprise and investment here; if she remains satisfied that new enterprises have adequate access to innovation technology and-or appropriate assistance from the European Union; and if she will make a statement on the matter. [43042/18]

View answer

Bernard Durkan

Question:

191. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which small and medium enterprises can qualify for support in the context of innovation and technology; the extent to which an advantage is afforded to FDI as opposed to the indigenous sector; and if she will make a statement on the matter. [43045/18]

View answer

Bernard Durkan

Question:

192. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the way in which Ireland compares with other EU and non-EU member states, including the UK, in terms of an attractive location for business and enterprise to locate and avail of innovation and technology; if there are particular areas needing attention in this regard particularly after Brexit; and if she will make a statement on the matter. [43046/18]

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Written answers

I propose to take Questions Nos. 188, 191 and 192 together.

Innovation 2020, Ireland's strategy for research and development, science and technology, was launched in December 2015 and articulates Ireland’s ambition to become a Global Innovation Leader. The strategy aims to build on the significant successes which have seen Ireland dramatically improve its innovation performance globally.

Research, Development and Innovation (RDI) is globally recognised as the key economic differentiator and, as such, a very important feature of enterprise and investment in Ireland. Put simply, RDI enables Irish companies to make products and services that are innovative, competitive and more novel than those in global markets.

Earlier this year my Department launched a €500 million Disruptive Technologies Innovation Fund under the National Development Plan, with an initial exchequer allocation of €180 million to 2022. The Fund is competitive and is seeking investment in the research, development and deployment of disruptive technologies and applications on a commercial basis. It will drive collaboration between Ireland’s world-class research base and industry as well as facilitating enterprises to compete directly for funding in support of the development and adoption of these technologies. Collaboration with an SME was an essential requirement in order to be eligible for funding under Call 1 of the Fund.

Enterprise Ireland (EI) and IDA Ireland are both agencies of my Department and each has a specific and very different role to play in the context of innovation and technology. EI is primarily focused on SMEs and indigenous enterprises, while IDA Ireland’s main objective is to encourage investment into Ireland by foreign owned companies, in the form of foreign direct investment (FDI).

RDI enables Irish companies to make innovative products and services that are competitive and more novel than those in global markets. However, for an SME investment in RDI can be costly in terms of time, personnel and budget. It also requires a focus beyond the day to day challenges of running a business with limited resources.

EI has role in this regard to de-risk such RDI so that companies will develop new and improved products and services and achieve the required exports to allow economic growth. This is done either by supporting companies to do RDI within the company, or by collaborating with Higher Education Institutions (HEIs) or by sourcing / licencing new technologies from HEIs which can provide a step change in their innovative capabilities. These supports all help companies to develop new and improved products and services which serve as the basis for sustainable economic growth.

SMEs qualify for all of EI’s funding programmes and a limited number of these programmes are also open to FDI companies. These supports all help companies develop new and improved products and services which serve as the basis for sustainable economic growth and are detailed below:

- In-Company RDI - supporting the development of new or substantially improved products, services or processes which will have a competitive advantage in their target market. This enables companies to increase employment through sustainable and substantially increased sales;

- The Agile Innovation Fund was launched in Quarter 4 2017 and is already gaining huge interest from companies. This Fund allows up to 50% in support for projects to a maximum total cost of €300,000 and has fast track approval;

- Innovation Vouchers - providing vouchers worth €5,000 aims to introduce them to innovation, linking them with a network of knowledge providers, North and South of the border;

- Innovation Partnerships - helping industry to engage in collaborative research projects with Irish universities and Institutes of Technology to develop new products and services;

- Technology Gateways - providing Business Development resources to the Institutes of Technology and other firms to help them interact with industry on a local, regional and national basis;

- Technology Centres - Technology Centres, a partnership between EI and IDA Ireland, are organised to respond rapidly to industry defined needs and conduct market-relevant RDI in partnership with collaborating groups of companies. Participating companies propose areas and themes of greatest relevance to them over a 3-5 year period. In response, the researchers develop solutions that respond to these needs, often exploring avenues that can lead to new licensable intellectual property;

- Campus Incubators – such facilities are internationally recognised as an important element of public assistance for technology-intensive start-ups. Incubators now exist on every university and Institute of technology Campus in the country.;

- The Business Innovation Initiative (BII) is aimed at driving innovation beyond selling products based on technical innovations; in turn providing more customer focussed process and service solutions;

- The Small Business Innovation Research (SBIR) Initiative is a cross-government process that allows public bodies to use public procurement to source RDI and innovative solutions to solve ‘identified challenges’ with solutions that are not currently commercially available. This provides significant business opportunities for innovation focused companies.

High Potential Start Up (HPSU) support is EI’s most significant and relevant support available for new start-ups. HPSUs are start-up businesses with the potential to develop an innovative product or service for sale on international markets and the potential to create 10 jobs and €1m in sales within 3 to 4 years of starting up. A range of supports are available under the HPSU offer such as the:

- Innovative HPSU Fund - providing support to early stage companies considered to have an innovative product, service or technology with the potential to achieve international sales and create employment. It is an equity investment into HPSU clients on a co-funded basis to support the company’s business plan. This offer also leverages private investments to help the company grow and succeed in the implementation of their business plans;

- New Frontiers Programme - a national entrepreneur development programme delivered locally through the Institutes of Technology (IoTs) and funded by EI.

- Competitive Start Fund (CSF) – aimed at accelerating the growth of start-up companies that have the capability to become HPSU companies.

IDA Ireland also has an important role to play in the Irish economy, as FDI has been, and will continue to be, a key plank upon which Ireland’s economy is built. Its contribution is far reaching and it is estimated that 20% of all private sector employment in the State is directly or indirectly attributable to FDI. It also contributes significant taxation revenue to the Exchequer, generates other commercial activity across the economy and helps to drive investment in research and innovation.

IDA Ireland also has an important role to play in the Irish economy, as FDI has been, and will continue to be, a key plank upon which Ireland’s economy is built. Its contribution is far reaching and it is estimated that 20% of all private sector employment in the State is directly or indirectly attributable to FDI. It also contributes significant taxation revenue to the Exchequer, generates other commercial activity across the economy and helps to drive investment in research and innovation.

IDA Ireland is tasked with growing and sustaining FDI in Ireland. It achieves this by partnering with potential and existing investors to help them establish or expand operations here. It also provides a range of supports, including RDI grant assistance, to its client companies.

The four main types of grant offered by IDA Ireland to its clients are:

- Employment Grants are a fixed sum payable on the creation of each agreed job;

- Fixed Asset (capital) grants are payable as a percentage of expenditure incurred by the grantee on the purchase of fixed assets and can be related to the number of jobs created and maintained;

- Research and Development grants are payable as a contribution towards the cost of RDI undertaken by the grantee company;

- Training Grants are paid in certain cases to enable necessary skills to be learned.

The agency can also make available specific grants or a combination of grants which will frequently be calculated as an overall amount of grant per job, based on the number of jobs to be created by the grant-aided project.

Competition for global FDI has become increasingly intense. Nevertheless, multinational companies continue to invest and re-invest here with leading global firms from many sectors - including life sciences, ICT, engineering and digital media - all based in Ireland. The contribution that these investments make to our wider economy is undoubtedly significant and the Government is working hard to ensure that the country remains a destination of choice for overseas firms.

Ireland's strengths when it comes to attracting FDI are well-documented. These include our competitiveness, talented and productive workforce, favourable demographics and membership of the European Union. Our pro-enterprise business environment, and track record as a home to FDI, are also key factors. Reinforcing and sustaining these strengths is important to ensuring Ireland's continuing FDI competitiveness.

IDA Ireland's 2017 Annual Results provides evidence of our continuing capacity to attract FDI to Ireland. Total employment by overseas companies in Ireland has now surpassed 210,000 people - a record level - with the numbers of investments also increasing. IDA Ireland is also attracting more investment to the regions.

EI and IDA Ireland are resourced to meet the innovation needs of their respective client companies through the range of supports outlined above. SMEs do not compete with FDI projects in order to access supports and no advantage is afforded to foreign-owned companies in terms of the supports available for innovation.

Benchmarking Ireland’s performance against other comparable economies is a key tool to enable the delivery of that ambition and to enable us to develop steps to improve our comparative performance. In this year’s publication of the European Innovation Scoreboard 2018, Ireland remains in the category of “Strong Innovator” and has moved up a place to 9th in the EU. Ireland is placed first in three out of the ten dimensions considered - innovative SMEs, employment in knowledge-intensive activities and sales due to innovation activities. Ireland has also retained 10th place in the Global Innovation Index, out of 126 countries assessed. According to IBM Global Location Trends 2018, Ireland remains the number one destination for value for money from foreign direct investment.

The news that Ireland has fallen from 6th to 12th in the Institute of Management Development (IMD) world competitiveness rankings publication is disappointing. The National Competitiveness Council and my officials are reviewing the findings in detail to establish what actions we can take to further improve our competitiveness. However, I would note that despite the change in our ranking, we are the 3rd most competitive economy in the Euro area. This is still a significant achievement especially when you consider that the UK is ranked 20th.

It is also important to remember that a real indication of Ireland’s competitiveness is our ongoing strong employment growth across sectors and regions. In this regard, the impressive performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended.

As is recognised by the IMD, many of Ireland’s traditional assets remain highly rated – in particular, our tax regime, high educational level, skilled workforce, business friendly environment and dynamic economy are all considered very attractive by business.

Further improving Ireland’s competitiveness performance is a key priority for the Government. We are working hard to consolidate Ireland’s traditional strengths in terms of talent, productivity and export competitiveness and to address those areas where we lag behind other countries, particularly in relation to infrastructure.

Assistance from the European Union continues to play a vital role in supporting innovation in enterprises operating in Ireland, both indigenous SMEs and foreign-owned multinational companies.

EI also has supports in place to help companies maximise the funding they can receive from the European Union.

Horizon 2020 is the instrument which supports collaborative R&D in Europe and provides an important source of non-exchequer funding for companies. It enables us to amplify the impact of domestic public investment by leveraging complementary funding from the EU.

Horizon 2020 has a budget of €75 billion and runs from 2014 to 2020. A budget of €30 billion has been allocated to the final three years of Horizon 2020, which will provide significant funding opportunities for companies in Ireland that participate in the programme over the period 2018-2020. Ireland has won €611 million from 2014 to August 2018 in competitive, EU funding from Horizon 2020. Higher Education Institutions accounted for €317.4 million of the total and companies, €232.8 million. The funding for companies included €158.8 million awarded to SMEs.

Under Horizon 2020, the SME Instrument is available and is specifically targeted at single or groups of highly innovative SMEs with international ambitions, determined to turn strong, innovative business ideas into winners on the market. The instrument provides full-cycle business innovation support from the stage of business idea conception and planning over business plan execution and demonstration to commercialisation. Ireland has the highest success rate in Europe for the Horizon 2020 SME Instrument with a 13% success rate, compared to a European average of 5.5%.

In light of Brexit, Irish companies will continue to focus more RDI in a bid to protect their current exports to the UK. Innovation will continue to play a central role in growing exports as well as contributing to employment and EI will assist SMEs in this regard. This continued innovation helps to insulate us from market shocks, such as those posed by Brexit.

Economic Competitiveness

Questions (189)

Bernard Durkan

Question:

189. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which all enterprises existing and-or new, FDI or indigenous, continue to be screened to ensure a smooth and unimpeded operation of their enterprise and the elimination of administrative obstacles; and if she will make a statement on the matter. [43043/18]

View answer

Written answers

Ireland remains a global leader in attracting foreign direct investment (FDI). While competition from a range of jurisdictions across Europe, Asia and the Americas is increasingly intense, multinational companies continue to invest and re-invest here. Our strengths include our competitiveness, talented and productive workforce, favourable demographics and membership of the European Union. Our pro-enterprise business environment, and track record as a home to FDI, are also key factors. Reinforcing and sustaining these strengths is important to ensuring Ireland's continuing FDI competitiveness.

As reflected in its mid-year results, the IDA has won 139 projects in the first six months of this year – compared with 114 in the first half of 2017. The contribution that these investments make to our wider economy is undoubtedly significant and we are working hard to ensure that the country remains a destination of choice for overseas firms.

However, there is no room for complacency and, as Minister for Business, Enterprise and Innovation, I am very aware of the need to continue to improve the environment for doing business in Ireland and remain vigilant to the very significant challenges in the external environment. My objective is to create the best possible environment for enterprise, entrepreneurship, innovation and investment. IDA Ireland, for its part, builds relationships with investors in order to aid their understanding of Ireland's enterprise environment and provide them with the assistance needed to overcome administrative obstacles. IDA also maintains a direct relationship with investors and provides assistance as companies grow and diversify their Irish operations.

Brexit Issues

Questions (190)

Bernard Durkan

Question:

190. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which she is engaged in the encouragement of business and enterprise with all EU states having particular regard to the impact of Brexit; and if she will make a statement on the matter. [43044/18]

View answer

Written answers

I want to assure the Deputy that the Government's work on Brexit preparedness at all levels and for all outcomes is well advanced. Brexit presents the most significant economic challenge of the past 50 years for businesses in all parts of the country and my Department and its agencies are working hard to ensure that potentially impacted firms are taking the necessary steps to prepare and mitigate risks and to take advantage of potential opportunities.

The Eurozone is a key market for Irish businesses, and the second largest market for client companies Enterprise Ireland (EI). Exports to the Eurozone were worth €4.6 billion in 2017, up 9% on the 2016 figure. EI is continuing to work with companies to provide them with the skills and expertise they need to expand into markets throughout the Eurozone.

EI has a range of supports to assist companies in expanding into new markets, including:

- Market Discovery Fund - supports Enterprise Ireland clients research new markets for products and services.

- “Prepare to Export Scorecard”: The Scorecard helps Irish companies with global ambition to self-assess how prepared they are to start exporting.

- Operational Excellence Offer: Enables Irish companies trading internationally to develop or transform their wider business in order to compete more effectively.

- Irish Advantage Campaign: The aim of the #Irish Advantage export promotion campaign, is to stimulate awareness of Irish products and services and encourage buyers to source from Ireland.

- A new Online customs Training Programme to be launched shortly to demystify customs procedures. This will be available to all exporters and importers.

- Brexit Advisory Clinics: The purpose of these clinics is to encourage companies to examine their potential exposure to Brexit, to complete the Brexit SME Scorecard and use the Be Prepared Grant to plan their strategic response to Brexit.

- Brexit Scorecard: An interactive online platform to self-assess exposure to Brexit under six business pillars.

- Be Prepared Grant: This grant offers SME clients a grant of up to €5,000 to assist them in preparing an action plan for economic shocks such as Brexit.

- The Agile Innovation Fund: giving companies rapid fast-track access to innovation funding, and up to 50% in support for product, process or service development projects with a total cost of up to €300,000.

- Brexit 'Act On' Programme: This funding is to support the engagement of a consultant to draw up a report with tailored recommendations to help clients address weaknesses and become more resilient.

- Strategic Consultancy Grant: This helps client companies to hire a strategic consultant for a set period to assist the company to develop and implement significant strategic initiatives.

In addition, earlier this week EI held its annual International Markets Week (IMW) event at the RDS with a record 650 Irish exporters attending over three days. More than 150 international Market Advisors from EI’s 33 overseas offices attended over 2,100 meetings, giving advice to Irish companies on global export opportunities and how to diversify into new markets. This year’s IMW also featured a Brexit Zone, where experts offered practical advice and assistance to companies exporting to the UK. The Brexit Zone also gave companies an opportunity to have one-to-one meetings with experts to discuss practical issues related to Customs, Transport and Logistics; Financial and Currency Management and Strategic Sourcing.

Questions Nos. 191 and 192 answered with Question No. 188.

Small and Medium Enterprises

Questions (193)

Bernard Durkan

Question:

193. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which borrowing costs here are affecting growth and development of small and medium enterprises; and if she will make a statement on the matter. [43047/18]

View answer

Written answers

Without investment enterprise growth is slower and the productive capacity of the economy is lower than optimal. While recent studies report that Irish businesses are investing less than their EU counterparts several possible barriers to this investment have been highlighted, including the cost of borrowing.

The ESRI study Measuring the Investment Gap and its financing requirement for Irish SMEs found that businesses are investing about a third less than would be expected based on fundamental factors. This study is consistent with the findings of several domestic and European surveys that point to underinvestment by Irish businesses. The EIB Group Survey on Investment and Investment Finance 2017 highlighted that Irish businesses reported a higher investment gap than their EU counterparts - 19% versus the EU average of 15%. The SME Brexit Impacts Study conducted in September 2017 found that 48% of businesses are not investing currently and that 55% did not plan on investing in the following 18 months.

The ESRI/Department of Finance Study, Exploring SME Investment Patterns in Ireland: New Survey Evidence, published in September 2018 reported that more than two thirds of SMES in the sample reported that they were satisfied with their investment levels or with their current capacity. The main stated reasons for not having sought credit in the past six months are dominated by a simple lack of credit requirements, a reason cited by 89% of businesses not seeking credit.

Irish firms fund a high share of investment using internal funds. The EIBIS Survey 2017 indicates that 75% of investment by Irish companies is financed using own funds, substantially above the EU average of 60%. This reliance on own funds for investment limits the size and timeliness of investment. It also means that a business is not establishing a credit track record which would support future access to finance.

Consequently, the level of demand for credit among Irish SMEs is lower than the EU average. The European Central Bank SAFE study shows that the loan and overdraft application rates in Ireland are considerably lower than euro area averages and that lending expressed as a proportion of domestic demand is also significantly below European norms. However, the Department of Finance SME Credit Demand Survey in July this year shows that credit demand is increasing with 26% having applied for bank finance in the first 6 months of 2018 compared to 20% in 2017.

The cost of borrowing for Irish SMEs is higher than the European average and this is a barrier to investment for some SMEs. The ECB SAFE study reports that interest rates on new NFC loans below €0.25 million (proxy for SME lending) in Ireland are substantially above euro area averages. One explanation for the interest rate differential is that the SME lending market in Ireland continues to be highly concentrated. According to the latest Central Bank SME Market Report the combined market share of new lending of the three main banks was 82%.

It is in this context that my Department has developed some important SME-specific initiatives to improve availability of affordable finance for SMEs. A revised Credit Guarantee Scheme was launched in July 2018 and is providing new financial products and loans other than traditional bank loans and involving other financial providers (beyond the three main banks) for Irish SMEs. The Brexit Working Capital Loan Scheme was launched in March this year. It provides affordable financing (maximum interest rate of 4%) to Irish businesses that are either currently impacted by Brexit or will be in the future. The Microenterprise Loan Fund Scheme was introduced in 2012 and is administered by MicroFinance Ireland. The purpose of the Fund is to provide loans of €2,000 up to €25,000 to Micro-enterprises who cannot obtain funding through traditional sources.

As part of Budget 2019 I announced a new longer term Brexit loan scheme, the Future Growth Loan Scheme, which is being developed by my Department and the Department of Agriculture, Food and the Marine (DAFM) in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund (EIF). Through a counter-guarantee from the EIF, the Future Growth Loan Scheme will leverage €62 million of Exchequer funding, of which 60% will be provided by my Department and the remaining 40% will be provided by the Department of Agriculture, Food & the Marine over a five-year period to make a fund of up to €300 million available to eligible Irish businesses for terms of 8-10 years.

Small and Medium Enterprises

Questions (194)

Bernard Durkan

Question:

194. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which her attention has been drawn to emerging trading competitive disadvantages for small and medium enterprises here in comparison with other locations throughout the EU and the UK; the extent to which these issues will be addressed in the short and medium term; and if she will make a statement on the matter. [43048/18]

View answer

Written answers

Competitiveness is integral to exports, jobs growth and as a means of achieving sustainable improvements in living standards. Improving competitiveness performance is a core focus of the work of my Department and wider Government policy and is particularly vital in light of the challenges posed by Brexit.

Ireland’s overall competitiveness performance remains positive. The Institute for Management Development shows that Ireland is the 12th most competitive economy in the world and the 3rd most competitive economy in the euro area. The 2018 Global Competitiveness Report published by the World Economic Forum on 17 October shows Ireland is holding its 23rd position in the Global Competitiveness Index and continues to be the 8th most competitive economy in the euro area and the 11th most competitive economy in the EU28. The Report shows a range of strengths – Ireland is ranked in the top 15 in relation to the Cost of Starting a Business (4), Attitudes toward entrepreneurial risk (11) and Growth of innovative companies (14). Furthermore, Ireland scores 99.4 out of 100 in terms of Macroeconomic stability. It is an important signal to international investors. However, we are ranked low on Market size (44), our Financial system (37) and Infrastructure (34). The National Development Plan outlines the areas where the Government will substantially increase future capital investment in infrastructure and help further improve our competitiveness.

Most importantly, our improved competitiveness is reflected in strong employment growth across sectors and regions. The strong performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended and reflects the competitiveness of the environment in which to do business in Ireland.

Recent reports by the National Competitiveness Council have highlighted the need to continually enhance competitiveness performance. I share the Council’s view that to further improve competitiveness we must preserve fiscal sustainability, maximise investment in infrastructure and talent, maintain cost competitiveness, and drive innovation and productivity across all economic sectors. Global uncertainty, and Brexit in particular, has underlined the importance of building competitive advantage, generating an uplift in enterprise export competitiveness and continuing to harness the benefits from trade and the Single Market to secure sustainable jobs and growth. My objective is to ensure the economy is resilient at sectoral and enterprise level to deal with imminent competitiveness challenges and to build further on the progress we have made.

My Department is driving the implementation of our research strategy, Innovation 2020. We are putting more people on the ground in foreign markets to attract investment and helping Irish businesses which export to the UK and helping others diversify into new products and markets. I launched the €300 million Brexit Loan Scheme in March 2018 this year. This scheme supports the working capital needs of companies impacted by Brexit and will be available for two years to eligible businesses with up to 499 employees. In addition, my Department and the Department of Agriculture, Food and the Marine in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund (EIF) are developing the Future Growth Loan Scheme as announced in Budget 2019. The €300m long-term Loan Scheme will provide businesses the opportunity to borrow for up to ten years to support capital investment.

Regional Development Initiatives

Questions (195)

Bernard Durkan

Question:

195. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which emphasis is placed on facilitating and encouraging employment generating enterprises throughout the regions with particular reference to the need to ensure an even spread of investment with consequent benefit to the national economy; and if she will make a statement on the matter. [43049/18]

View answer

Written answers

Since becoming Minister for Business, Enterprise and Innovation, I have made regional development my top priority. Indeed, enterprise development and job creation in the regions of Ireland is a key policy priority of this Government.

The Regional Action Plan for Jobs (RAPJ) initiative is a central pillar of the Government's ambition to create 200,000 new jobs by 2020, 135,000 of which are outside of Dublin.

A key objective of each of the plans is to have a further 10 to 15 per cent at work in each region by 2020, with the unemployment rate of each region within one percentage point of the national average.

We are well on the way to meeting this target. Progress across the eight regions has been very positive since the launch of the initiative, with an increase in employment of 146,400 people in employment Q1 2015 to Q2 2018 in the regions outside of Dublin and 240,600 additional jobs nationwide.

Numbers employed across the State increased by 74,100 over the year to Q2 2018. In the last year (Q2 2017 – Q2 2018) employment increased in 7 out of 8 regions. All regions saw increases in IDA and Enterprise Ireland employment during 2017.

The unemployment situation has improved, but a continued focus needs to remain on ensuring that all regions are developing to their potential and contributing to national economic growth.

We also have new challenges since the RAPJ process started, not least Brexit, which will impact all regions, and is of particular concern to areas close to the Border.

We not only need to keep a focus on job creation and retention, we need to ensure that the jobs created are of good quality and sustainable for the longer term.

With these challenges in mind, I and Minister Breen met with regional representatives at Farmleigh House in April last to discuss the next iteration of the Regional Action Plans.

Arising from those discussions, I have asked the RAPJ Implementation Committees in each region to lead a process to Refresh and Refocus their Plans to 2020.

They will define between five and ten clearly defined regional enterprise development objectives with job creation potential, together with measurable time-bound actions to deliver over the next two years.

Preparation of the refreshed Plans have commenced and Implementation Committee meetings have taken place to date in the North-West, North-East, Midlands, Mid-West, West, South-West, South-East and Dublin. The refreshed Plans are targeted for completion by the end of 2018.

In December last year I announced an allocation of €30.5 million in funding to support enterprise capability in the regions, with 21 projects from all over the country receiving funding. This Regional Enterprise Development Fund (REDF) totalling €60 million is being rolled out by Enterprise Ireland over the next 4 years to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level. The Fund supports the ambition, goals and implementation of the Regional Action Plans for Jobs.

In April of this year I launched a second competitive call under the REDF in March this year, which will make available the remainder of the €60 million. The results of this competitive process will be announced by the end of the year.

The Enterprise Agencies continue to work to contribute to employment and economic growth throughout all regions. Enterprise Ireland’s strategy for 2017-2020 aims to create a further 60,000 jobs, while sustaining existing ones, which will make an important contribution to jobs and economic growth across all regions.

The Local Enterprise Offices operating under the auspices of the Local Authorities and Enterprise Ireland in every county continue to play a vital role in providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own businesses.

IDA meanwhile will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019.

Regional development and growth of indigenous enterprise was one of my three main priorities for Budget 2019, announced last week. In order to support this, I announced the following allocations:

- an extra €5m to the 31 Local Enterprise Offices (LEOs);

- a doubling Retail Online Pilot Scheme to €1.25m to strengthen retailers online offering;

- a new round of €175m for Seed and Venture Capital Fund;

- €2.75m for SMEs Regional Innovation and Technology Clusters Programme; and

- a €300m Brexit Future Growth Loan Scheme which addresses the lack of availability of loans in the marketplace for loan-terms of longer than five to seven years

These initiatives will operate alongside existing supports for businesses and indigenous entrepreneurs.

It is important to reiterate that any business can find out more information about the supports available to their business by visiting the SME Online Tool or they can contact their Local Enterprise Office which is the first stop shop for information, support and referral in relation to supports for business in every county.

My priority is to continue to work with stakeholders collectively across the Regions to build on the progress to date on implementation of the Regional Action Plan for Jobs over the period to 2020, and to focus on leveraging the key strengths in each region. My Department is also working closely with the Department of Housing, Planning and Local Government in relation to the National Planning Framework and development of Regional Spatial and Economic Strategies, and with the Department of Rural and Community Development on roll out of the Action Plan for Rural Development.

Knowledge Development Box

Questions (196)

Bernard Durkan

Question:

196. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she remains satisfied that Irish interests in the manufacturing and services sectors are adequately safeguarded through the mechanism of the knowledge development box; and if she will make a statement on the matter. [43050/18]

View answer

Written answers

The Knowledge Development Box (KDB), introduced in Budget 2016, forms part of Ireland’s competitive offering and continues to support Irish owned companies to innovate and to compete effectively on international markets. The KDB provides an effective 6.25% rate of corporation tax which is internationally competitive. The KDB complements the existing suite of initiatives available to companies that undertake R&D activities in Ireland across the lifecycle of research and development – providing a competitive proposition for continued business investment.

The continuing imperative to establish Ireland as the best place in which to succeed in business is reinforced in our national Enterprise and Innovation strategies - strategies based on export-led growth, underpinned by innovation and talent - strategies that aim to embed resilience, to deliver sustainable employment opportunities and a higher standard of living for all.

As a key part of Ireland's competitive offering as a location of choice from which to do business, the KDB has helped secure investment since its introduction in 2016.

With regards to indigenous companies, it is likely that the new certification scheme introduced last year will make the scheme more accessible for those companies into the future. The Knowledge Development Box (KDB) (Certification of Inventions) Act 2017 introduced a new certification scheme to allow smaller companies to avail of the KDB without the need to apply for a patent.

The KDB will continue to form part of Ireland's proposition and stimulate further investment in R&D activities by indigenous enterprises - ultimately delivering jobs and economic substance in Ireland.

Jobs Data

Questions (197)

Bernard Durkan

Question:

197. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the number of jobs lost or created in County Kildare on an annual basis in the past six years to date; and if she will make a statement on the matter. [43051/18]

View answer

Written answers

The CSO does not report on jobs gains or losses per county, rather it reports on the change in the standing stock of employees. The latest available results of the CSO Business Demography Survey, provided in table 1, show the number of employees working in enterprises in Kildare since 2012.

Table 1. Number of Employees Working in Enterprises in Kildare as Reported by the Business Demography Survey.

County

2012

2013

2014

2015

2016

Kildare

38,359

39,722

41,338

45,360

46,516

The Business Demography is based purely on administrative data received by the CSO from Revenue on an annual basis. The geographical breakdown for enterprises in this survey is an approximation. The county breakdown is based on the address at which an enterprise is registered for revenue purposes, rather than where the business actually operates from, because no comprehensive administrative source is currently available for business locations.

However, the Department of Business, Enterprise and Innovation conducts an Employment Survey each year. The survey records the employment in Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta assisted companies. Table 2 shows the gains and losses in total jobs in agency assisted companies in Kildare over the last 6 years as measured by the Annual Employment Survey (AES) 2017. The AES is based on the actual location of the jobs and includes permanent, temporary, full-time and part-time jobs. 2017 is the latest year available; the 2018 survey is currently in the field.

Table 2. Gains and Losses in Total Jobs (Permanent, Full Time + Temporary, Part-time and Other) in Agency Assisted Companies in Kildare as measured by the Annual Employment Survey (AES 2017)

Year

Gains in Total Jobs

Losses in Total Jobs

Total Jobs

2012

1,130

-850

16,602

2013

1,220

-754

17,068

2014

1,605

-713

17,960

2015

1,738

-812

18,886

2016

1,124

-1,068

18,942

2017

888

-1,414

18,416

Science Foundation Ireland

Questions (198)

Seán Sherlock

Question:

198. Deputy Sean Sherlock asked the Minister for Business, Enterprise and Innovation the meetings that have taken place with the director general of Science Foundation Ireland in respect of the defunding of an institution (details supplied); the details of minutes supplied to her by her officials; the details of notes supplied by the director general to the meeting; and the details of her conclusions arising from the meeting. [43091/18]

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Written answers

I met with Mark Ferguson, Director General of Science Foundation Ireland and Ms Ann Riordan, Chair of Science Foundation Ireland on 3 July 2018. I was not supplied with any notes by the Director General for the meeting nor did my officials supply me with minutes.

At this meeting I was advised of the outcome of an international review process in respect of the seven (Phase 1) SFI Research Centres.

I was also advised that the Board of Science Foundation Ireland had followed the recommendation of an International Oversight Review Panel not to provide a new term of funding for the INFANT Research Centre at this time. Instead, it is to be invited to submit a new application for funding to the next open competition for SFI Research Centre funding in 2020.

I am advised that the decisions on the review process were communicated to all the Centres involved by the Director General of SFI by 6 July.

I am further advised that Science Foundation Ireland also provided detailed feedback to the Centres on the outcome of the review process. In the case of the INFANT Research Centre, a feedback meeting took place on 13 July.

Science Foundation Ireland is an independent agency who have run an international review process in line with best practice. I, as Minister, cannot intervene in that process.

Ambulance Service

Questions (199, 227, 228, 229, 230)

Seán Haughey

Question:

199. Deputy Seán Haughey asked the Minister for Health if a direct funding arrangement to Dublin City Council will be introduced, in accordance with the terms of the motion passed by Dáil Éireann on 19 June 2018 and which was supported by the Government, in respect of the cost of the emergency ambulance service operated by the council under the provisions of the Fire Services Act 1981; and if he will make a statement on the matter. [43061/18]

View answer

Seán Haughey

Question:

227. Deputy Seán Haughey asked the Minister for Health if the plan prepared in 2013 by the HSE and the national ambulance service to take over the emergency ambulance service operated by the Dublin Fire Brigade and to progressively withdraw funding from Dublin City Council for that service will not now be implemented with regard to the terms of the motion passed by Dáil Éireann on 19 June 2018 which was supported by the Government; and if he will make a statement on the matter. [43053/18]

View answer

Seán Haughey

Question:

228. Deputy Seán Haughey asked the Minister for Health the arrangements he has put in place to implement all of the terms of the motion passed by Dáil Éireann on 19 June 2018 which was supported by the Government relating to the fire based emergency ambulance service operated by the Dublin Fire Brigade; and if he will make a statement on the matter. [43054/18]

View answer

Seán Haughey

Question:

229. Deputy Seán Haughey asked the Minister for Health if an interim information technology arrangement, that is, installation of terminals in the NEOC Tallaght and the Dublin Fire Brigade call centre to ensure that the nearest available ambulance responds to emergency incidents in Dublin, will be introduced; and if he will make a statement on the matter. [43055/18]

View answer

Seán Haughey

Question:

230. Deputy Seán Haughey asked the Minister for Health the progress he has made in consultation with the Minister for Housing, Planning and Local Government in introducing a direct funding arrangement to Dublin City Council in respect of the operation by Dublin Fire Brigade of the emergency ambulance service in accordance with the terms of the motion passed by Dáil Éireann on 19 June 2018 which was supported by the Government; and if he will make a statement on the matter. [43056/18]

View answer

Written answers

I propose to take Questions Nos. 199 and 227 to 230, inclusive, together.

I can assure the Deputy that there are no plans for the National Ambulance Service to take over responsibility for the delivery of emergency ambulance services in Dublin. It is however proposed to transfer all Dublin ambulance call taking and dispatch functions to the HSE National Emergency Operations Centre (NEOC), such that all such services across the state are consolidated in one centre. This is required because the current call taking arrangements in Dublin represent an unacceptably high patient safety risk and give rise to delays in the allocation of ambulance resources to patients, including in potentially life-threatening situations.

There have been suggestions that we could find a technical solution by updating the computers in the Dublin Fire Brigade call centre in Townsend St. That has been examined but I am advised that it would not resolve the problem and address the patient safety risk. What is required is a seamless operation with one point of contact for Dublin.

Dublin City Council and the HSE have been working together in an attempt to resolve the issues and a mediation process between the Council and staff associations has been underway, for some time. I would welcome the early conclusion of those discussions as we urgently need to address the current patient safety risk.

I fully accept the need to look at funding mechanisms to ensure that the emergency ambulance service provided by Dublin Fire Brigade is placed on a sustainable footing and that we have the required capacity to meet demand. I look forward to the outcome of the mediation process which will, I expect, address these issues.

Disability Services Provision

Questions (200)

Maurice Quinlivan

Question:

200. Deputy Maurice Quinlivan asked the Minister for Health the reason a person (details supplied) is waiting a significant time for transfer to the National Rehabilitation Hospital; if the person will be transferred as soon as possible; and if he will make a statement on the matter. [42765/18]

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Written answers

The Government is committed to providing services and supports for people with disabilities which will empower them to live independent lives, provide greater independence in accessing the services they choose, and enhance their ability to tailor the supports required to meet their needs and plan their lives. This commitment is outlined in the Programme for Partnership Government, which is guided by two principles: equality of opportunity and improving the quality of life for people with disabilities.

As the Deputy's question relates to a service issue, I have arranged for the question to be referred to the Health Service Executive (HSE) for direct reply to the Deputy.

Hospital Services

Questions (201)

Gerry Adams

Question:

201. Deputy Gerry Adams asked the Minister for Health if he will consider locating eye care services in the Louth County Hospital, Dundalk, in view of the fact that there are 715 patients on the combined ophthalmology outpatient waiting lists in Our Lady of Lourdes Hospital and Louth County Hospital; and the recommendations of the primary care eye services review group. [42776/18]

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Written answers

As this is a service matter, I have asked the Health Service Executive to respond to you directly as soon as possible.

Hospital Charges

Questions (202)

Billy Kelleher

Question:

202. Deputy Billy Kelleher asked the Minister for Health if the removal of charges for chemotherapy and radiotherapy patients who are not in receipt of a medical card or medical insurance is being considered in view of the hardship that this can cause at a very vulnerable time; and if he will make a statement on the matter. [42781/18]

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Written answers

The Health Act 1970 (as amended) provides that all persons ordinarily resident in the country are eligible, subject to certain charges, to public in-patient hospital services. The current public hospital statutory in-patient charge is €80 per night, subject to a maximum of €800 in any period of twelve consecutive months. All persons accessing public in-patient services in a public hospital are liable for the statutory public in-patient charge, subject to a number of exemptions, including where a person is a medical cardholder. There are no currently no plans to exempt further categories of patients from the public in-patient charge.

Hospital charges represent a nominal yet important contribution towards the cost of providing hospital services. Any curtailment of this funding stream would put further pressure on the Exchequer and the taxpayer in order to maintain service levels.

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